John is a U.S. based Forex trader. He focuses principally on the Japanese Yen/U.S. Dollar (/$) rate. The current spot rate is 110/$. After considerable study, he concludes that the exchange rate, in the coming 60 days, will probably be about 95/$. He has the following options on the Japanese Yen to choose from:

Option

Strike Price

Premium

Put on

104/$

$0.000032/

Call on

104/$

$0.000041/

Discuss whether he should buy a Put on or Call on and determine his net profit if the spot rate at the end of the 60 days is 100/$.